I’m not brave enough to really partner with someone as I have tried in the past with construction and no one can see eye to eye even after establishing boundaries and set guidelines.

Michael, it doesn't matter how hight the DSCR is as long as it's over what the lender wants so there is lower risk in the eyes of the lender.

Since you would be living there too, I presume, you could keep a close eye on what goes on, to make sure they don't move in additional occupants.It would drive me insane, the utility wastage on my dime that the tenants would cause. 

I wanted to give him a chance to do a deal and at the same time get two sets of eyes working for me.

In my eyes it needs about 20K done to it. 

There are isntances where a buyer may be willing but the appraiser who is under the watchful eyes of bank's underwriting will come up short and hurt you with you projected margin.

Should you stick a needle in your eye?

It appears that, other than Mike's tip regarding audible noises from the floor, most major issues with the foundation can be spotted by a careful, naked-eye inspection.As a follow-up, do both of you (or anyone else that joins the thread subsequently) rule out properties at that point or consult first with an expert to see if the issue is a deal breaker? 

They know how and when to cut costs and someone with a good eye for architecture can look at that floorplan and be like ok this goes here and that goes there. 

In today's real estate market where cap rates are in the 5s, 4s and in Vancouver BC the 2s, it's pretty eye opening to see how long those payback periods are. 5% cap rate = 20 years, 4% = 25 years and 2% = 50 years... and that's just getting back to even!